French election: Europe core “pulls closer together”

Emmanuel_MacronThe Dutch elections earlier this year were described as an important test for populism in Europe. The French elections this weekend seem to suggest populism, seen by some as a threat, has greatly diminished.

Funds Europe presents a collection of comments from fund management firms this morning following the victory of Emmanuel Macron.

Philippe Ithurbide, global head of research, strategy and analysis, at Amundi
“Uncertainty is lifted and we can now focus on fundamentals, which have improved significantly over the last few quarters. The specific risk on France disappears, as does the European systemic risk (Frexit).” 

Valentijn van Nieuwenhuijzen, chief strategist and head of multi asset at NN Investment Partners
“The outcome confirms that while populism in Europe remains a threat, it is not the directional force for government policy that it has become in the UK and the US.”

Monica Defend, global head of multi-asset research, Pioneer Investments
“In our view, with the Dutch and French elections now behind us, the biggest threats on this year’s electoral calendar have passed. The appeal of the AfD in Germany is clearly diminishing, therefore the one critical ballot remaining concerns Italy, whose election is likely to take place in Spring next year.”

Stephen Mitchell, head of strategy, global equities at Jupiter Asset Management
“For Europe, this result – and Angela Merkel’s strong showing on Sunday in the Schleswig-Holstein state election – mean the core of Europe pulls closer together. Macron wants to improve relations with Germany, although he is not without protectionist tendencies. The threat of populism in France gains a reprieve that the current upward economic momentum in Europe will assist – this is a reprieve that requires Macron and his parliament, when elected in June, to deliver on promises.”

Adrien Pichoud, chief economist at SYZ Asset Management
“The forthcoming German elections this autumn do not pose the same fundamental risk for the future of European institutions and the single currency. And the main bone of contention of the next parliamentary election in France is no longer the prospect of France eventually leaving Europe, but rather the capacity of the new President to deploy his political programme.”

Kenneth Orchard, global fixed income portfolio manager, T. Rowe Price
“As a committed supporter of the European Union, Macron is expected to work well with German Chancellor Angela Merkel strengthening the Franco-German alliance on which the bloc depends. On Brexit, Macron has emphasised the importance of ‘defending the integrity’ of the EU’s key principles on labour movement and trade. Result: The UK will be facing an even tougher negotiating partner in Brexit talks than previously thought.”

©2017 funds europe

Sponsored Profiles

SPONSORED FEATURE: Smarter than beta

Jun 14, 2017

‘Smart beta’ investing is rapidly becoming a popular alternative to both conventional passive management and traditional active management.

SPONSORED FEATURE: Smart beta: Unlocking key drivers of return

Jun 14, 2017

Manuela Sperandeo, iShares Head of Specialist Sales EMEA, tells Funds Europe how investors can leverage smart beta strategies to target numerous outcomes.

SPONSORED FEATURE: Minimum variance indices: Rewriting the rules

Jun 14, 2017

The FTSE Russell indices tracked by lyxor lead to fewer specific risks, fewer valuation and crowding issues and more consistent performance.

SPONSORED FEATURE: The reflationary environment

Jun 06, 2017

Funds Europe talks to Andreas Wosol about the implications of a return to reflation and why the value part of the European equity market could support investors in such an environment.

Executive Interviews

INTERVIEW: Finding managers that can (and do)

Apr 18, 2017

Fabrice Kremer, a fund selector at Banque de Luxembourg Investments, has berated fundamental managers for failing to beat indices, but he remains committed to active funds. He speaks to Nick...

JERSEY INTERVIEW: ‘A steady sort of place’

Mar 21, 2017

The chief executive of Jersey Finance is keen to portray the island as a stable, trustworthy jurisdiction. He talks to George Mitton.

Roundtables & Panels

TRENDING: Smart beta indices continue onward march

Jun 14, 2017

We asked five investment experts how smart beta indices have performed against cap-weighted indices over the past year and what the investment outlook suggests about the prospect for different investment factors.

SMART MONEY: Following the smart money

Jun 14, 2017

We asked six investment professionals about the emphasis they are placing on smart beta and active ETFs and how platforms are adopting these products.